An 11,978-square-foot office building in eastern Loveland sold for $4.05 million, representing a near-record price of $338.37 per sf.
SRI Investments/Stucco Rite Inc., a Colorado-based investment company, sold the multitenant, Class A building at 4090 Clydesdale Parkway to First American Exchange Co.
“The beautiful building has attracted quality tenants and is at the center of explosive growth in Northern Colorado,” said Jared Goodman of Cushman & Wakefield, who represented the seller in the transaction.
“Northern Colorado’s employment and population growth is and has performed ahead of the nation. The interest in this building along Crossroads Boulevard just east of Interstate 25 is a prime example of that growth and demand in quality product in Northern Colorado.”
“This transaction allows us to redeploy some capital to another development we are currently working on just east of this property on Crossroads Boulevard,” said Kurt Georgeades, CEO of SRI Investments.
The building, located in Crossroads Business Park, was completed in 2016 and was 100% occupied at the time of sale. Original tenants include Ewing-Leavitt Insurance, Bridgewater Homes and Keystone Financial, and there is additional income from a Verizon cell tower.
The buyer purchased the property as a partial 1031 exchange.
“This building is coupled with superior quality and stable tenants. It was important to the buyer to invest locally in Northern Colorado,” said Cobey Wess of SVN/Denver Commercial, who represented the buyer.
The property sold at 6.62% cap rate with varied tenant lease terms remaining. The price was one of the highest paid for an office building over 10,000 sf in Northern Colorado.
“This sale represents a classic case of how the quality of a building, tenants and location make a cap rate or return on investment not the only determining factor in today’s market” Georgeades commented.